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Bloomberg: Wall Street Institutions Exiting Bitcoin ‘Cash and Carry’ Arbitrage

2 hours ago

January 21st (Bloomberg) — A key arbitrage trade in crypto derivatives markets is unwinding. Wall Street firms had previously used a “cash-and-carry” strategy: buying physical Bitcoin while selling futures to capture the spread. But a flood of capital has sharply narrowed that spread, pushing annualized returns down from roughly 17% a year ago to about 4.7% now — barely enough to cover funding costs. Market participants note the era of nearly risk-free high returns may be over, with traders now shifting to more complex strategies in decentralized markets. CME Group reports institutional investors are diversifying away from Bitcoin into other tokens like Ethereum.
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An anonymous whale who accumulated BTC at a high three months ago has transferred 2000 BTC to Binance.

On January 21, LookOnChain data shows that whale address bc1q8g — which purchased 2,000 BTC three months ago at approximately $109,759 per coin (valued at $2.195 billion then) — has just deposited all of that BTC into Binance. The holding is now worth roughly $1.787 billion. If the whale sells the BTC, it would incur a $40.8 million loss.

3 minutes ago

The tokenization startup Cork has raised a $5.5 million seed round, with CSX and a16z leading the investment.

Jan. 21 — Tokenization startup Cork has closed a $5.5 million seed funding round, per The Block. The round was led by CSX, a16z and Road Capital, with participation from BitGo Ventures, Cooley, IDEO Ventures, PEER VC and WAGMI Ventures, among others. Cork is a risk-tokenization-focused startup building a "programmable risk layer" to tokenize and trade latent risks tied to emerging real-world asset classes.

3 minutes ago

The U.S. Senate Committee on Agriculture may release the latest Cryptocurrency Market Structure Bill text today

**Jan 21st** Per Crypto In America, CEOs of numerous cryptocurrency firms are gathering in Davos, Switzerland this week for deep discussions. Meanwhile, the U.S. House Agriculture Committee is expected to release the latest crypto legislative text by day’s end, outlining key issues for stakeholders to monitor ahead of next week’s rescheduled hearing. In a prior statement, Trump noted Congress is advancing cryptocurrency market structure regulation and expressed hope to sign the bill into law soon.

3 minutes ago

US Stocks Mostly Higher at Open, Most Crypto-Related Stocks Up

Jan. 21 — Per Bitget market data, U.S. stocks opened higher, with the Dow Jones Industrial Average (Dow) up 0.12%, the S&P 500 rising 0.2% and the Nasdaq Composite gaining 0.25%. Most crypto-related stocks traded higher at the open: Strategy jumped 1.07%, BitMine gained 0.3%, Coinbase (COIN) rose 0.94% and Circle (CRCL) increased 0.96%.

3 minutes ago

Ondo Global Markets has launched on Solana

On January 21, Ondo Finance announced that its Ondo Global Markets division will expand operations to the Solana blockchain, bringing over 200 tokenized U.S. stocks and ETFs to its 3.2 million daily active users. This move significantly broadens the range of tokenized assets in the Solana ecosystem, covering tech and growth stocks, broad-market and sector-specific ETFs, leveraged long/short ETFs, blue-chip equities, gold, silver and other commodity-linked ETFs, as well as assets tied to sectors like artificial intelligence (AI) and electric vehicles (EVs).

3 minutes ago

Trump: Fed Chair Will Change Stance Once in Office

On January 21, U.S. President Donald Trump stated he will soon announce his pick for the new Federal Reserve Chair, noting the person he has chosen is a "man." The incoming Fed Chair is a highly respected individual, but there is concern that once in office, his stance may change.

3 minutes ago

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